Codan Limited · ASX:CDA
Codan — ASX Listed Company Breakfast (November 2016)
15 slides from Codan's conference presentation, Nov 8, 2016
Slide 1: ASX Listed Company Breakfast
ASX LIS TED COMPANY BREAKFAS T 8 N o v e m b e r 2 016 Donald McGurk Managing Director & CEO
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer This presentation has been prepared by Codan Limited (ABN 77 007 590 605) (Codan). The information contained in this presentation is for information purposes only and is not investment, financial product, legal or tax advice. This presentation contains summ
Slide 3: Codan Limited
CODAN LIMITED RADIO SOLUTIONS METAL DETECTION TRACKING SOLUTIONS 3
Slide 4: Delivering Shareholder Value Over the Long Term
DELIVERING SHAREHOLDER VALUE OVER THE LONG TERM Shareholder value We succeed by: ‐ Developing unique, high value technologies ‐ Delivering superior product performance in the harshest conditions ‐ Solving customers’ productivity, safety and security problems ‐ Creating multiple revenue streams from
Slide 5: Global Footprint – 85% of Sales Exported
GLOBAL FOOTPRINT – 85% OF SALES EXPORTED FY16 sales by location $25M $20m $32m$15M $38m $46m $20m $35 m $10m $10m $11m $45m $20M $50m $52m $55M $2m $2m $30m $30m $5M $26m $15M 5
Slide 6: Financial Snapshot
FINANCIAL SNAPSHOT ASX Code CDA Shares on issue 177.2 million Market capitalisation $270 million FY16 NPAT (underlying) $21.1 million FY17 NPAT (consensus) $23.5 million Debt free FY16 dividend – 50% payout ratio 6.0 cents Underlying NPAT 6
Slide 7: Significant Investment in R&D
SIGNIFICANT INVESTMENT IN R&D Invested 9% of sales in FY16 ($15.3 million) More than 150 engineers across the globe World class facilities Teams in Adelaide, Perth, New Zealand and Canada Working collaboratively with industry experts and research institutions Supported by advanced manufacturing and
Slide 8: New Adelaide Facilities
NEW ADELAIDE FACILITIES Consolidated Adelaide operations onto one site - December 2015 Located in the SA Defence Hub at Technology Park, Mawson Lakes Capacity for future growth Employer of choice 8
Slide 9: Radio Communications
RADIO COMMUNICATIONS Best in class, reliable, user friendly and cost-effective solutions Technology platforms Long Range Digital Radio (HF) ‐ Infrastructure free, long range radio ‐ Used by security, peacekeeping, humanitarian and military organisations - Used extensively in Africa, Middle East and
Slide 10: Radio Communications
RADIO COMMUNICATIONS Becoming more relevant in large global markets Long range digital radio (HF) Land mobile radio (VHF, UHF) New product development directed at New LMR product suite will address this Military 2 segment broader market in FY18 US$500 million market US$1B market 10
Slide 11: Metal Detection
METAL DETECTION The world’s best hand-held metal detection technology Entry level Coin & Treasure Gold US$179‐309 US$399‐799 US$1,099‐1,700 US$2,749 US$4,125 US$6,375 US$8,800 11
Slide 12: Tracking Solutions
TRACKING SOLUTIONS Minetec products deployed in operating mines The world’s most accurate underground tracking system with integrated software for efficient and safe mine management Underground gold mine, Indonesia Underground copper mine, Utah, USA Underground gold mine, Papua New Guinea Rio Tinto
Slide 13: Codan Defence Electronics
CODAN DEFENCE ELECTRONICS Leveraging our Defence capability A new initiative capitalising on our long history of supplying the defence sector Core technical competence in RF sub-system design Significant opportunity but early days 13
Slide 14: Financials
FINANCIALS FY16 delivered continued profit and dividend growth: Revenue $169.5 million 18% Underlying NPAT $21.1 million 67% Fully franked dividend 6.0 cents 71% Strong cash flow generation over the last 12 months Codan is now debt free Focus on reducing earnings volatility and increasing profitabil
Slide 15: Thank You
THANK YOU 15 Ed CODAN